“I hugged the Ministry of Economic Affairs’ toilets. Looking at the screens made me vomit.” Grosser than in that Diary of a season on the fifth floorfrom Juan Carlos Torre, Emmanuel Alvarez AgisUndersecretary of State for Macroeconomic Programming between 2011 and 2013, second term of CFK, told days ago in an interesting debate about streaming Play Now What extent could management stress reach during his years as an economist?
The title of Torre’s book, which has been widely talked about, alludes to the outcome of his time on the economics team Juan Vital SourrouilleEconomics Minister of Raul AlfonsinForty years ago, democracy was barely restored. Australian plan included. In conversation with the former rector and professor of Di Tella University, Ernesto SchargrodskyTorre decided to read the sentence that begins it diary…to give an idea of the climate that prevailed in the Ministry at the time and the kind of bond that was forged between the desperate members of Sourrouille’s team:
“Two days ago I was with Juan and when he saw me he said to me: ‘Tell me something, let me cheer up, I’m depressed.’ I didn’t ask him why, it was unnecessary. I could guess. A few minutes later I met him. Jose Luis (Machinea) And right there, without me asking, he said to me: Juan Carlos, I’m depressed, what are we working for? And finally it appears two days later Mario Brodersohn and he tells us, ‘Well, that’s no more, we have to do something.'”
Authoritarians don’t like that
The practice of professional and critical journalism is a mainstay of democracy. That is why it bothers those who believe that they are the owners of the truth.
In a streaming interview The houseand in a post in X, the current Minister of Economic Affairs Luis Caputo He said that one of his goals – he did not clarify with what deadlines – is: “eliminate the country’s dependence on Wall Street“(We want to) pay more and more to Wall Street,” Caputo said. He spoke of the need to rebuild a local capital market, financed with money from the future severance fund provided for in the labor reform bill, and of the buffer dollars that would flow into the market once the “fiscal innocence” bill is passed, which, along with the budget bill, has already received half-vote from lawmakers.
Luis Caputos 2025: euphoria in the city, red light in activity, stability on loan and small table dismantled
“This job aid fund will fuel a new capital market. It’s $4 billion a year. And then there is the law of presumption of tax innocence. “My ideal as a country is that we, the companies and the people, start getting credit from the Argentinians themselves,” enthused the minister.
It should be noted that the severance pay fund, which would replace the previous remuneration, is financed by the employer, but the employer is compensated by a reduction in the employer’s contributions. The cost of funding the pension system will be approximately $2.5 billionaccording to UNSAM’s Center for Labor and Development Studies (CETyD). “This means that the state will no longer receive 3% of contributions intended for social security, which is equivalent to the state bearing the costs of the layoffs from its own resources,” the report says. All this, it is concluded, comes at the expense of pensions and beneficiaries of AUH and other social benefits.
Take this cup from me…
that one Dealer Elite like Caputo (ex-JP Morgan, ex-Deutsche Bank) leaving Wall Street leads to the obvious image of the drinker breaking the whiskey bottle. Not to mention the use of the term “dependency” or the proposed repeal of university funding and disability emergency laws. Too many adjustments, relatively discreet and just as profound on the fifth floor since the election victory in October.
Last week, the central bank, which acts as a division of the Ministry of Economic Affairs, announced that starting January 1, the fluctuating bands between which the dollar moves will be adjusted for inflation. A widespread claim that Caputo systematically rejected, as did the announcement that the central bank would begin buying dollars to bolster international reserves, as the Monetary Fund and a long line of economists of all denominations have called for.
Economía has a maturity of $4.3 billion in interest and principal on the restructured AL30 and GB30 bonds Martin Guzman in 2020, during the government of Alberto Fernandez (the same expires in July).
Luis Caputo “will try” not to issue any more debt under foreign legislation to pay the January maturities
To comply, the government issued another dollar bond, Bonar 29, for which it received almost $1,000 million at a near double-digit interest rate (9.26%). It was a test Caputo used to test the market, with not entirely satisfactory results. And that led to the calibration of the replacement bands being adjusted.
This issue was almost entirely covered by the domestic market, banks and institutions, and there was no significant participation from foreign investors.
Now it is being insisted through various channels that Economía would obtain a repo loan (with a guarantee and a repurchase obligation from the state) from international banks; It would have dollar deposits in the hands of the Treasury of about $2,000 million or would eventually resort to the swap agreed with the US to reach maturity.
President Milei expressed his firm views on this issue. “We will pay off the debt, through the repo offer alone we have $7,000 million, so we are calm” he said in an interview with last weekend LN+.
Then what bothers Caputo? If Argentina forgoes financing on international markets, this has effectively been forbidden since the financial collapse Mauricio Macri CaputoIs it really because Argentina no longer has anyone in New York who can lend it money?
Caputo counts the hours until the budget is approved
In an unusual exercise by Argentine standards, former minister Guzmán Caputo celebrated his announcement. Although he speculated that Argentina would no longer have foreign loans, as happened to Caputo himself in 2018, he said in a post on
An authoritative Wall Street source consulted for this column stated that the search for Caputo would aim at a more predictable financing framework for Argentinaless vulnerable to international financial shocks. “Argentina has a very underdeveloped capital market in terms of depth. Today, all emerging markets are financed through local capital markets. History has shown that Wall Street opens and closes very quickly for Argentina. This is a laudable goal,” he assured.
Another voice from New York understands that Caputo’s definition is “quite rhetorical” and that he hopes to attract funding “for good policies.” “The government wants to show signs of independence. The repo loan is still attractive. But a diversified market makes the big banks lose power. Breaking with Wall Street is not good,” he warned.
What do these Caputo definitions convey in what is supposed to be the best economic-financial moment in Argentina in the last two years, a few days before the due date of a new debt? Need? Fear? Stress on the fifth floor?
DCQ
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